Final answer:
The Morrill Act of 1862 granted federal lands to states to fund the establishment of agricultural and engineering colleges. Hence, the correct answer is option 2.
Step-by-step explanation:
The act that provided millions of acres of federal lands to the states for the purpose of selling them to fund the building of agricultural and engineering colleges is OPTION 2: Morrill Act.
This legislation, also known as the Land Grant College Act, was passed in 1862 and aimed to advance education in the fields of agriculture and the mechanic arts by establishing institutions in each state to benefit the agricultural and industrial communities. The federal government supported this educational growth, which allowed for a more affordable college education, and greatly influenced the expansion and development of the United States.